Net Sales

Increased by ~9% (from USD 36,418 million to USD 39,856 million)

Net sales grew significantly driven by stronger customer demand and operational momentum established in previous periods, including contributions from strategic initiatives and acquisitions. This sustained growth reflects effective market positioning and favorable industry conditions. " "

Operating Income

Increased by ~1% (from USD 5,079 million to USD 5,133 million)

Operating income saw only a modest improvement despite higher sales, indicating that increased sales volumes were largely offset by rising operating expenses such as SG&A and depreciation. This modest increase continues the trend of cost pressures observed in earlier periods. " "

Net Earnings

Declined by ~5% (from USD 3,600 million to USD 3,433 million)

Net earnings dropped despite higher top-line performance due to increased financing costs and other expenses, which resemble challenges seen in previous periods where acquisition costs and macroeconomic pressures drove up interest and non-operating expenses. " "

Basic Earnings per Share

Declined by nearly 5% (from USD 3.64 to USD 3.46)

The decline in basic EPS mirrors the drop in net earnings and reflects the combined impact of higher interest expense and lower net earnings, as well as less favorable dilution adjustments compared to the previous period. " "

Total Assets

Increased by over 25% (from USD 79,230 million to USD 99,157 million)

Total assets rose markedly due to significant growth in goodwill, intangible assets, and higher inventories and receivables, largely as a continuation of the expansion strategy and the impact of past acquisitions, which expanded the asset base dramatically into the current period. " "

Total Liabilities

Increased by ~18% (from USD 77,410 million to USD 91,202 million)

Total liabilities increased considerably as the company financed its strategic growth and acquisitions through additional debt and extended credit lines, consistent with prior periods’ financing strategies to support expansion initiatives. " "

Stockholders’ Equity

Jumped over 338% (from USD 1,820 million to USD 7,955 million)

The dramatic increase in stockholders’ equity is mainly attributed to sizable adjustments in retained earnings, additional paid-in capital, and comprehensive income improvements possibly tied to reclassifications and acquisition-related accounting adjustments made in previous periods. " "

Cash and Cash Equivalents

Fell by about 68% (from USD 4,264 million to USD 1,369 million)

The significant drop in cash and cash equivalents primarily reflects substantial outflows due to heavy investments in acquisitions and capital expenditures, which have eroded liquidity despite strong operational cash generation in earlier periods. " "

Net Cash Provided by Operating Activities

Decreased by ~21% (from USD 5,497 million to USD 4,325 million)

A decline in operating cash flow indicates that, although the core business remains robust, changes in working capital dynamics and constraints on liquidity – potentially from increased inventory levels and other operational investments carried forward from previous periods – have limited the available cash generation. " "

Total Sales Growth

FY 2025

2.8% "

2.8% "

no change

Comparable Sales Growth

FY 2025

1% "

1% "

no change

Gross Margin

FY 2025

33.4% "

33.4% "

no change

Operating Margin

FY 2025

13% "

13% "

no change

Adjusted Operating Margin

FY 2025

13.4% "

13.4% "

no change

Effective Tax Rate

FY 2025

24.5% "

24.5% "

no change

Net Interest Expense

FY 2025

$2.2 billion "

$2.2 billion "

no change

Capital Expenditures

FY 2025

2.5% of sales "

2.5% of sales "

no change

Diluted Earnings Per Share

FY 2025

no prior guidance

-3% "

no prior guidance

Adjusted Diluted EPS

FY 2025

-2% "

-2% "

no change

SRS Acquisition Integration

Previously discussed across Q4 2025 " " , Q3 2025 " " " , and Q2 2025 " " " with an overall positive tone – executives emphasized hitting targets, improved cross-selling opportunities, and a process for rapid integration that boosts comp growth despite mix and margin headwinds.

In Q1 2026, executives noted that SRS is exceeding expectations in performance and growth; it is gaining market share across roofing, pool, and landscape; its integration is supporting the trade credit program; and while it exerts a margin headwind, its contributions to sales and the Pro ecosystem are robust. " " " "

Consistent positive sentiment with maturation of the integration; while mix challenges persist, the near‐term performance and broader strategic benefits (e.g., trade credit, organic growth) are being emphasized.

Pro Customer Ecosystem Expansion

Discussed in Q4 2025 " " , Q3 2025 " " " and Q2 2025 " " " with detailed coverage of incremental sales, expanded capabilities (including trade credit, enhanced order/account management), and investments driving strong Pro customer engagement.

In Q1 2026, the emphasis remains on expanding the Pro ecosystem. The discussion highlighted robust trade credit program management (via SRS), enhanced performance in Pro-heavy categories, and accelerated comps among Pro customers. " " "

Bullish and steady focus. The positive narrative is maintained with additional details on improved Pro sales and integration, indicating sustained momentum and potential for further organic growth.

Deferred Home Improvement Demand

Addressed in Q4 2025 " " " " , Q3 2025 " " " " and Q2 2025 " " " – executives noted deferrals in larger remodeling projects due to high financing costs and macro uncertainty, with cautious tone about future recovery despite underlying fundamentals.

In Q1 2026, the discussion became more forward looking with a quantified mention of a $50 billion shortfall in spending and the potential for a $10–$15 billion share opportunity for Home Depot as rates decline and consumer confidence improves. " "

A shift toward optimism on this topic. While earlier periods focused on the deferral and caution, Q1 2026 introduces a more positive expectation on eventual recovery, though large projects remain subdued in the short term.

Supply Chain Resilience and Tariff/Cost Pressures

In Q4 2025 " " and Q3 2025 " a strong emphasis was placed on diversified sourcing and supplier partnerships to offset tariff pressures. Q2 2025 did not cover these topics.

Q1 2026 provided detailed commentary on diversified sourcing (with >50% U.S. sourcing) and inventory strength, along with a clear strategy to absorb about half of tariff costs without passing them on to customers. " " " "

Steady and proactive. The theme remains consistently highlighted with enhanced detail in Q1 2026, reinforcing resilience and active management of cost pressures.

Margin and Profitability Pressures

Detailed in Q4 2025 " , Q3 2025 " " and Q2 2025 " " " with emphasis on mix impacts from SRS, higher interest expenses, and cost management efforts to offset pressures while maintaining guidance.

In Q1 2026, continued margin pressures were noted with a decline in both gross and operating margins due to SRS mix effects and higher costs; however, improvements in shrink and operational initiatives provide partial mitigation. " " "

Persistent pressure with cautious management. The ongoing challenge of balancing integration impacts with operational improvements is evident; the sentiment remains cautious though some mitigating levers are noted.

Weakness in Large Remodeling/Big-ticket Transactions

Across Q4 2025 " " " , Q3 2025 " " " " and Q2 2025 " " " there was consistent coverage of softness in large discretionary projects due to high interest rates and elevated financing costs, with repeated negative comps for big-ticket transactions.

In Q1 2026, similar concerns were raised – while big-ticket comp transactions showed marginal positive movement (e.g. +0.3%), the underlying weakness in large remodeling projects remains due to high interest rates and consumer preference for smaller projects. " "

Continued weakness. There is no significant recovery in large-ticket areas, though a minor positive shift is indicated; overall, the sentiment remains a concern tied to macro-financing challenges.

Macroeconomic Headwinds and Financing Challenges

Covered in Q4 2025 " " , Q3 2025 " " " and Q2 2025 " " highlighting broad economic uncertainties, elevated interest rates, lower housing turnover, and political risks that pressure consumer financing for large projects.

In Q1 2026, this topic continues to be a key headwind – higher interest rates affecting larger remodeling projects and financing remain significant challenges, although Home Depot shows confidence in its operational teams and Pro initiatives as counterbalances. " "

Consistent concern. The challenges are persistent across the periods with repeated emphasis on the negative impact of high rates; however, there is an underlying confidence in management’s ability to navigate these headwinds over time.

New Store Investment and Capital Expenditure Concerns

Discussed in Q4 2025 " , Q3 2025 " " and Q2 2025 " " with clear targets for new store openings and increased capital expenditure percentages (from 2% to 2.5% in fiscal guidance), demonstrating an ongoing strategic expansion.

In Q1 2026, Home Depot reported the opening of 3 new stores and capital expenditures of about $800 million in the quarter, with continued commitment to invest roughly 2.5% of sales in capital projects. " "

Stable and strategic. The initiative to expand the footprint and upgrade capabilities remains consistent, reflecting a bullish long‐term investment strategy despite short-term macro pressures.

Operational Efficiency Challenges (Shrink and Weather Disruptions)

Q4 2025 " " , Q3 2025 " " " and Q2 2025 " " - consistent discussions on shrink reduction efforts yielding positive margin tailwinds and weather disruptions (from hurricanes or extreme conditions) causing temporary sales variability.

In Q1 2026, shrink improvements continue with six consecutive quarters of better performance, providing a 30–40 basis point tailwind. Weather disruptions were noted in February, followed by a rebound in subsequent months, showing effective operational management. " " "

Gradually improving. Shrink reduction is clearly a positive trend and weather-related impacts are managed with rebounds noted; despite external volatility, operational improvements signal steady progress.

Diversified Business Model and HD Supply Performance

Q2 2025 included commentary on the diversified business model and highlighted HD Supply’s strong performance and positive sales growth, although later periods (Q3/Q4) had little mention.

In Q1 2026, the focus remains on the diversified sourcing strategy—over 50% U.S. sourcing with controlled exposure to foreign countries—and HD Supply is mentioned as part of total comp reporting but not detailed separately. " " " "

Consistent but lower profile. The diversified business model continues to underpin the company’s strategy, and HD Supply remains a steady performer; the emphasis is more strategic in nature rather than a major headline topic in Q1 2026.